Company and Commercial law

This guide was researched and written by Garrigues Abogados y Asesores Tributarios on behalf of the Spanish Institute for Foreign Trade (ICEX) and the Directorate General of Trade and Investments (DGCI). This guide is correct to the best of our knowledge and belief at the time of going to press. It is, however, written as a general guide so it is recommended that specific professional advice be sought before any action is taken, and therefore no responsibility whatsoever is assumed for the contents, including opinions, contained in this guide or for any actions based on such contents.

Madrid, February, 2002 Spanish Institute for Foreign Trade (ICEX)

Instituto Espaol de Comercio Exterior (ICEX) Paseo de la Castellana, 14-16, 28046 Madrid Ph: 00 (34) 91 349 61 00 Fax: 00 (34) 91 431 61 28 E-mail: icex@icex.es Web: www.icex.es

Creacin y realizacin: Bravo Lofish, S.L. Imprime: Grficas Marte

ISBN: 84-7811-440-8 ISSN: 1137-2907 N.I.P.O.: 381-02-007-4 Depsito Legal: 29824-2002 Company and Commercial Law 2

This publication has been edited with the technical advice of the Directorate-General for Trade and Investment. The Directorate within Spains Ministry of Economy is in charge of promoting foreign investment in Spain. Acknowledgements: General Subdirectorate of Regional Economic Incentives

Company and Commercial Law

Table of contents
I. Introduction to the Spanish Company Law .............................................................................5 III. Liability of shareholders and partners ...................................................................................6 IV. Formation of an S.A..............................................................................................................7 1. Minimum capital .....................................................................................................................7 2. Shareholders ..........................................................................................................................7 3. Formalities of incorporation....................................................................................................7 4. Contracts made in the corporations name prior to registration and acquisitions after registration..................................................................................................................................8 V. Basic characteristics of an S.A. .............................................................................................9 VI. Governing bodies of an S.A................................................................................................13 VII. Incorporation of limited liability companies ........................................................................18 VIII. Sole shareholder companies ............................................................................................18 VIII. Branches...........................................................................................................................19

Company and Commercial Law

Company Law
I. Introduction to the Spanish Company Law
Spanish corporate law was substantially modified by Law 19/1989. One of the stated purposes of this law was to adapt Spanish corporate law to the relevant EC Directives following Spains accession to the European Community. However, Law 19/1989 is more than a mere adaptation, since it includes many new provisions which are not required by EC law . Due to the very substantial modifications introduced by Law 19/1989, an amended version of the Corporations Law including such modifications was approved by Legislative Royal Decree 1564/1989 on December 22, 1989. This legislation is referred to henceforth as the Corporations Law. Following the promulgation of Law 19/1989, which dealt essentially with corporations, a new law regulating limited liability companies was enacted in 1995 (Law 2/1995), and Royal Decree 1784/1996 was enacted, establishing new Mercantile Register Regulations . The Commercial Code, the Corporations Law, the Limited Liability Companies Law and the Mercantile Register Regulations are the basic sources of law in this field . Lastly, the EUs Council of Ministers on October 8, 2001, adopted Council Regulation (EC) 2157/2001, which passes the Statute for a European Company (SE), together with Council Directive 2001/86CE, which completes the Statute for the European Company with regard to the involvement of employees . Said regulation will come into force on October 8, 2004, this being the time limit granted to Member States to adopt the legal, regulatory and administrative measures necessary to comply with the provisions of this Directive . The regulation of the European Company affords to companies operating in various Member States the option of being established as a single company under EC Law and being capable to operate throughout the EU with an unique regulation and unified management and reporting system. For companies acting in different EU Member States, the European Company offers the possibility of reducing their administrative costs with a legal structure adapted to the EU regulations. This new

Company and Commercial Law

regulation may result in the restructuring of large companies currently operating in various Member States and significant capital movements in Europe .

II. Forms of business enterprise

Spanish law envisages various different kinds of mercantile entities, all of which can be used by foreign investors . The most significant are: Corporation (Sociedad Annima, abbreviated as S.A.) Limited Liability Company (Sociedad de Responsabilidad Limitada, abbreviated as S.L. or S.R.L.) General Partnership (Sociedad Regular Colectiva, abbreviated as S.R.C. or S.C.) Limited Partnership (Sociedad en Comandita, abbreviated as S. en Com. or S. Com.) or Limited Partnership by Shares (Sociedad en Comandita por Acciones, abbreviated as S. Com. p. A.) The above forms of business enterprise are listed in order from the most common to the least frequently used. Traditionally, the corporation (S.A.) has been by far the most commonly used form, whereas the limited partnership has been rarely used . However, the limited liability company (S.L.) has gained popularity as a result, among other reasons, of its comprehensive regulation under Law 2/1995 and a lower minimum capital requirement than that for S.A.s . Some of the salient features of each of the above corporate forms are summarized below. It should be noted that in many instances the Law provides only minimum standards or general rules. The founders of a company have a great deal of flexibility in tailoring the structure of the company to their specific needs through appropriate drafting of the bylaws, for which purpose they should seek proper legal advice .

III. Liability of shareholders and partners

Both the S.A. and the S.L. are companies with capital in which the liability of the shareholders is generally limited to the amount of capital contributed by each . Technically, the capital of an S.A. is divided into shares, whereas the capital of an S.L. is divided into participation units . The general rule is clearly one of limited liability; however, under very exceptional circumstances, the corporate veil can be pierced to protect the interest of third parties .

Company and Commercial Law

Liability is not limited in a general partnership (S.R.C.). General partners are jointly and severally liable with the whole of their net worth for the debts of the partnership . A limited partnership (S. Com.) is a partnership in which there is at least one general partner and one or more limited partners. General partners are jointly and severally liable with the whole of their net worth for the debts of the partnership . Limited partners are only liable for the amount of capital they contribute or promise to contribute to the partnership. The capital of limited partnerships may be divided into participation units or shares .

IV. Formation of an S.A.

This section and the following sections summarize some of the most significant substantive aspects that commonly interest foreign investors with respect to the most widely used form of business entity in Spain, the S.A . For the most part, these items are generally applicable to the S.L. as well. Some of the most significant rules and exceptions applicable to the S.L. are dealt with in Section VII below .

1. Minimum capital
The minimum amount of capital stock required for an S.A. pursuant to the Corporations Law is 60,101.21. The capital must be fully subscribed and at least 25% of the par value of the shares must be paid in . The bylaws must state the manner and time period for the payment of the remaining portion of subscribed capital. No maximum time period for cash contributions is stated in the Law. The maximum time period for full payment of contributions in kind is five years from the date of incorporation or from the date of a capital increase, as the case may be .

2. Shareholders
No minimum number of shareholders is required to form an S.A. However, note the specific regime applicable to sole shareholder companies in Section VIII below . Shareholders can be individuals or companies of any nationality and residence .

3. Formalities of incorporation
The shareholders or their representatives must appear before a notary public in order to execute the public deed of incorporation, which includes the bylaws. Subsequently, the public deed of

Company and Commercial Law

incorporation has to be registered in the Mercantile Register. Upon registration, the company acquires the status of a legal entity . There is an alternative procedure for incorporation called successive formation . Essentially, this procedure involves an offering to the public at large by the promoters to subscribe shares upon incorporation of the new entity. This system is rarely used in practice and much less so in the case of foreign investors .

4. Contracts made in the corporations name prior to registration and acquisitions after registration
The formation of an S.A. is a two-step process involving, as noted, execution of the public deed before a notary public and registration in the Mercantile Register. It is only upon registration of the public deed of incorporation that the corporation acquires legal capacity and becomes a legal entity . Persons who enter into contracts on behalf of the corporation prior to its registration are jointly and severally liable for their performance, unless such performance was made conditional on the corporations registration and, if applicable, its later assumption of liability . Contracts made in the corporations name and on its behalf prior to its registration in the Mercantile Register may generally be accepted by the corporation within three months from registration . However, a corporation in the process of formation and its shareholders, up to the limit of the amount they have undertaken to contribute (and not directors or representatives), are liable for the following types of contract prior to registration: Contracts that are indispensable for registration . Contracts entered into by the directors within the scope of the powers granted to them for the preregistration stage . Contracts entered into by virtue of a specific mandate granted by all the shareholders . Upon registration, the corporation becomes bound by the foregoing acts and contracts . In these cases, and if the corporation accepts acts performed prior to its registration within three months from the date of registration, the joint and several liability of shareholders, directors or representatives lapses . During the two years following incorporation, the corporations shareholders meeting must grant its prior approval for acquisitions of assets for a consideration involving amounts in excess of 10% of the

Company and Commercial Law

capital stock, unless such acquisitions are within the ordinary scope of business of the corporation or the purchase is made on a stock exchange or by public auction. In the cases in which prior shareholders meeting approval is required, the requirements are basically as follows: Issuance of a report prepared by the directors . An independent valuation by appraisers appointed by the Mercantile Register .

V. Basic characteristics of an S.A.

1. Applicable law and bylaws
An S.A. is basically governed by the Corporations Law. The bylaws of an S.A . should therefore be drafted in accordance with Corporations Law requirements and must at least include reference to: Name of the company . Business purpose. This should be stated in a concrete and precise manner, since: - It serves to establish the general framework for the activities of the company . - The completion of the stated business purpose automatically leads to dissolution of the company, unless the bylaws provide for an indefinite duration . - If the business purpose is modified in such a way as to be replaced, the dissenting shareholders and non-voting shareholders, if any, can withdraw from the company and are entitled to be reimbursed for their shares . Duration of the company. The bylaws will ordinarily stipulate that the duration is indefinite in order to avoid triggering automatic dissolution . The date on which activities commence, which normally cannot be earlier than the date of execution of the public deed of incorporation . The location of the companys registered office, which must be in Spain, and the body competent to establish, transfer or close branches . Capital stock and shares . Managing body. The bylaws must determine whether the administration is entrusted to a Board of Directors or to some other body or person. In the case of collective management bodies, the manner

Company and Commercial Law

of debate and of adopting resolutions must be specified, as also the system for directors remuneration . Restrictions, if any, on the free transferability of shares . Ancillary obligations, if any. If ancillary obligations are created, the bylaws must state the content of such obligations, whether or not they are remunerated, and the penalties, if any, for breach thereof . Ancillary obligations are explained in further detail below . The accounting year-end. If not stated expressly, the company will be deemed to end its accounting year on December 31 . The business year cannot exceed twelve months . Special rights reserved to founders or promoters, if any . Additionally, the public deed of incorporation, which includes the bylaws, may contain whatever agreements and covenants the founders deem fit, provided that they do not contravene any law or the fundamental principles that govern S.A.s .

2. Capital stock requirements

The minimum subscribed capital for an S.A . is 60,101.21; at least 25% of the par value of all the shares must be paid in upon incorporation . For comparison purposes, the minimum capital requirements for other types of business enterprises are as follows: Limited Liability Company: 3,005.06, which must be fully paid in . Limited Partnership by Shares: 60,101.21 . General Partnership: no minimum capital requirement . In addition, specific regulations may provide that the capital stock of corporations engaged in certain fields of business (e.g . banking, insurance, etc.) must, at the time of incorporation, exceed the minimum amount required by the Corporations Law . There are currently no mandatory minimum debt-equity ratios under Spanish mercantile law for any type of business enterprise (however, there is a debt-equity ratio for tax purposes: see Tax system and exchange control legislation) .

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Lastly, it should be noted that there is a special rule which could require an increase in capital. This rule provides that there must be a certain balance between the capital stock and the net worth of a corporation, whereby if losses are incurred reducing such net worth to less than one-half of capital stock, the corporation will be under a mandatory cause for dissolution, unless capital stock is sufficiently increased (or reduced) .

3. Shares
a) Registered vs. bearer shares The shares of an S.A. can be registered or bearer shares. However, the shares must be registered in the following cases: If they are not fully paid in . If their transferability is subject to restrictions . If they are subject to ancillary obligations . When so required by special regulations (e.g. shares of banks and insurance companies) . b) Common vs. preferred stock Preferred stock may be created as a separate class or classes pursuant to the same procedural formalities applicable to amendment of the bylaws (i.e. quorum and voting requirements and method of calling the shareholders meeting), and may include shares entitled to a preferential dividend . In any case, a privileged class of stock would be considered illegal if it results in any of the following: Shares remunerated in the form of interest . Shares which directly or indirectly alter the proportionality between their par value and voting rights or the existing shareholders preferential right to subscribe new shares in capital increases . With regard to the particular regulations on the issuance of preferred stock, there exist differences resulting from whether the company is listed or non-listed on the stock exchange . In the case of listed companies, the following obligations are established: It is provided that where the privilege consists of the right to obtain a preferential dividend, when distributable profits exist the company is obliged to distribute such preferential dividend . The corporate bylaws should establish the consequences of failure to pay part or all of the preferential dividend, whether this is or is not accumulative as regards the unpaid dividend, and the possible rights of holders of privileged shares in connection with dividend to which the ordinary shares may be entitled .

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 Higher ranking is provided for the shareholder owning privileged shares, since collection of dividend by ordinary shares against the profits of one fiscal year is imperatively prohibited until the preferential dividend for the same fiscal year has been paid . In the case of non-listed companies, a more flexible system is maintained, since there are no rules of imperative law making specific regulations in the bylaws obligatory. Nevertheless, the company is obliged to declare a dividend wherever distributable profits exist, unless otherwise provided in its corporate bylaws . c) Premiums Shares may be issued with a premium payable to the company above their par value. In such cases the premium must be fully paid in upon subscription of the shares . d) Non-voting stock Non-voting stock may be issued for a total par value that does not exceed onehalf of the total paid-in capital . The special rights attached to non-voting stock are as follows: Minimum annual dividend The minimum annual dividend shall be set by the bylaws in any percentage in relation to the amount of paid-in capital corresponding to each non-voting share . The minimum annual dividend and ordinary dividends are cumulative for a period of five years in the case of nonlisted companies. In the case of listed companies this period will be indefinite . In other words, non-voting shares also participate proportionately with common shares if a dividend is distributed on the common shares . Preferential rights in liquidation In the event of liquidation of the company, non-voting shareholders rank above common shareholders with respect to their right to obtain reimbursement of the paid-in portion of their shares . Capital reduction If capital is reduced to offset losses, the reduction must first be applied against all other classes of stock before it can affect non-voting stock . Shareholder rights Non-voting stock has the same basic rights as common stock except for the right to vote at shareholders meetings (see description of basic shareholder rights below) .

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However, under certain exceptional circumstances, holders of non-voting shares may acquire a transitory right to vote at shareholders meetings. Two examples follow: - Non-voting shareholders acquire the right to vote if the minimum annual dividend is not distributed . - If, due to a capital reduction, all common shares are amortized, then non-voting stock becomes voting stock until such time as equilibrium is restored between voting and nonvoting stock (i.e. new common shares are issued in sufficient number so that the total par value of non-voting stock does not exceed one-half of total paidin capital). If equilibrium is not restored within two years, the company is subject to mandatory dissolution . e) Redeemable shares Redeemable shares as a form of privileged shares have been very recently introduced in Spanish corporate legislation. However the possibility of issuing this type of shares is only open to listed companies, subject to certain conditions . f) Ancillary obligations An ancillary obligation is an obligation to perform certain acts or to refrain from performing certain acts. Ancillary obligations do not form part of the capital stock of the company. The shares of an S.A. can only be paid for with money or property, not with labor or services. The ancillary obligation is a device whereby the labor or services or other obligations of particular shareholders can be tied to the corporation . g) Basic shareholder rights The basic rights of shareholders are as follows: Right to share in corporate earnings and in the assets upon liquidation . Preferential right to subscribe new shares or convertible bond issues . Right to attend and vote at shareholders meetings (except non-voting stock) and to challenge corporate resolutions . Right to obtain information about the companys affairs . h) Share certificates In general, shares may be either issued physically or recorded by a book-entry system. The conditions for recording shares under a book-entry system and the regulations of this system are contained in the Securities Market Law (Law 24/1988), as amended by Law 37/1998 .

VI. Governing bodies of an S.A.

The governing bodies of an S.A. are the shareholders meeting and the directors (who may or may not be organized as a Board of Directors, as explained below) .

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1. Shareholders meeting
The shareholders meeting is the S.A.s supreme governing body. The law distinguishes two types of meeting: ordinary and extraordinary. Additionally, both ordinary and extraordinary meetings may be held as universal meetings, as discussed below . a) Ordinary shareholders meeting An ordinary shareholders meeting may be held as and when stipulated by the bylaws, but an ordinary meeting must be held within the first six months of the financial year to review managements conduct of the business and to approve, if appropriate, the financial statements of the prior year and the proposed distribution of the prior years earnings. If the ordinary shareholders meeting is not held within the legal term, it may be called by a court, upon petition by the shareholders and subject to prior hearing of the directors . b) Extraordinary shareholders meeting Any meeting of the shareholders other than as described above is an extraordinary shareholders meeting . An extraordinary shareholders meeting can be called: By the companys directors if and when they consider it in the companys interests to do so . By the companys directors when requested to do so by shareholders representing at least 5% of capital stock . In this case, the directors must call the meeting so requested to be held within thirty days following the date of the notarial notification to them to call it . By a court if the directors disregard the notification referred to above . c) Venue and method of calling a meeting Both ordinary and extraordinary shareholders meetings must be held in the municipality where the company has its registered offices. A Spanish S.A. must be domiciled in Spain. Nevertheless, a universal shareholders meeting (see below) may be held anywhere . The formal requirements for calling a meeting, which relate to publicity and advance notice, are the same for ordinary and extraordinary meetings. Meetings must generally be called by a notice

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published in the Official Gazette of the Mercantile Register at least 15 days in advance of the meeting and in a high-circulation newspaper of the province in which the company has its registered offices . d) Universal shareholders meetings Regardless of the type of shareholders meeting (ordinary or extraordinary), the formal call requirements need not be followed if shareholders representing one hundred percent of the capital stock are present and agree unanimously to hold a shareholders meeting. Such meetings are called universal shareholders meetings .

e) Quorum and voting rules Shareholders meetings may generally adopt resolutions by simple majority provided the quorum requirements described below are met . In general, the quorum for a shareholders meeting, at the first call, exists when the shareholders present or represented at the meeting own at least twenty-five percent (25%) of the voting capital stock. If a second call has to be made (because there was no quorum at the first call), the meeting is deemed to be legally convened regardless of the percentage of capital stock present or represented at the meeting. A companys bylaws may set special call and quorum requirements for shareholders meetings; however, the special quorum requirements cannot be lower than the legal requirements outlined above . Special quorums are required by law for the adoption of resolutions on certain matters, e.g. debenture issuance, capital increase or reduction, any transformation, merger or spin-off of the company and, in general, for the adoption of resolutions amending the bylaws. In such cases, the quorum required at the first call exists when the shareholders present or represented at the meeting own at least fifty percent (50%) of the subscribed voting capital stock. At the second call, a quorum will exist if at least twenty-five percent (25%) of the voting capital stock is present or represented at the meeting . However, if a meeting subject to a special quorum requirement is held on second call with less than fifty percent (50%) of the voting capital stock present or represented, then a special voting rule stipulates that resolutions may only be validly adopted by the aye votes of shareholders owning at least two-thirds of the capital stock present or represented at the meeting . f) Proxies

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A shareholder may be represented at a shareholders meeting by any person, who need not be a shareholder unless the bylaws provide otherwise. The proxy must be in writing and be specific for each meeting . Special rules regulate the public solicitation of proxies. Proxies are deemed to have been solicited publicly if one person represents more than three shareholders .

2. Directors
An S.A.s executive governing body is its director or directors, who need not be Spanish citizens. The actual form of administration, i.e. Board of Directors, sole director, joint and severally directors or joint directors, must be stipulated in the bylaws, but can be changed at any time by the shareholders meeting . If a Board of Directors is created, it must have a minimum of three members . Furthermore, no maximum legal limit exists . A director is normally not required to be a shareholder unless the bylaws provide otherwise . The Board of Directors may validly adopt resolutions in writing without holding a meeting, provided certain requirements are met . An S.A.s directors are appointed by the shareholders meeting. Minority shareholders that meet certain thresholds of ownership are entitled to proportional representation on the Board . Appointment as a director becomes legally effective when accepted by the appointee, and must be registered in the Mercantile Register within a stipulated period of time . The term of office of directors is set by the bylaws and cannot exceed five years . Directors may be reelected for one or several further five-year periods . The shareholders meeting can freely dismiss the directors at any time . The following paragraphs refer to some special features of a Board of Directors: a) Powers of the Board of Directors The Board of Directors is the management body of the corporation . With respect to third parties, the Board of Directors represents the company in all acts within the scope of its corporate purpose. The company is bound even with respect to acts outside the scope of

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its corporate purpose as registered in the Mercantile Register if a third party acted in good faith and without gross negligence . Any limitation on the representative powers of the Board, even if registered in the Mercantile Register, is not binding on third parties . An S.A.s Board may delegate its functions to one or more managing directors or to an executive committee of Board members (however, the Board cannot delegate its accountability, or its obligation to submit annual financial statements to the shareholders meeting, or the powers delegated to it by the shareholders meeting without specific authorization from the latter to do so) . b) Adoption of resolutions by the Board The quorum for a Board meeting is the presence, either personally or by proxy, of one-half plus one of the Board members . c) Majority for adoption of resolutions Board resolutions are adopted: Generally, by an absolute majority of the directors attending (in person or by proxy) . Exceptionally, for permanent delegation of Board powers, by the affirmative vote of two-thirds of the Boards members; such delegation is not legally valid until it has been registered in the Mercantile Register . d) Liability of directors Directors are liable to the company, its shareholders and its creditors for damages caused by acts that are illegal, contrary to the bylaws or done without the due diligence required of directors . In such cases all the directors are jointly and severally liable. A director can only be exonerated from liability if he proves that he did not participate in the adoption or execution of the resolution and that he was unaware of the existence of the harmful act or, if he was aware of it, did everything reasonably possible to mitigate it or at least expressly opposed the resolution giving rise to the harm . e) Powers of attorney In addition to the powers vested in the Board of Directors, general powers of attorney may be conferred upon any person, whether or not a director, in which case they must be documented in a public deed of power of attorney registered in the Mercantile Register .

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VII. Incorporation of limited liability companies

Law 2/1995 on Sociedades de Responsabilidad Limitada (Limited Liability Companies) which came into force on June 1, 1995, made certain important changes to the legal framework governing the limited liability company (S.L.) which can sometimes be used as an alternative form of business entity instead of a corporation . Flexibility is one of the main objectives of Law 2/1995 which allows the participation unit holders (members) a wide margin in setting up, in the bylaws, the rules concerning the internal governance of an S.L . However, the participation unit holders of an S.L. company cannot cross the frontier which separates an S.L. from an S.A. An S.L. is intended to be a more closely held entity as evidenced by the fact that: Participation units are generally not freely transferable (unless acquired by other participation unit holders, ascendants, descendants or companies within the same group) . Debenture issues cannot be used as a means of raising funds . The scope for representation at the General Meeting is limited . Some salient features of the abovementioned Law are described below . An S.L. cannot have a capital stock of less than 3,005.06, which must be fully paid up. Capital stock must be divided into participation units, but these need not all be the same (and, consequently, they may carry different voting weight) . The genuineness of monetary contributions made at the time of incorporation or in connection with any capital increases must be attested to before a notary public . No independent appraisers report on nonmonetary contributions is required, although the founders and shareholders are jointly and severally liable for the genuineness of the non-monetary contributions made. Similarly, in capital increases the directors of the company are liable for the difference between the value of the non-monetary contributions stated in their report and the real value of the contributions .

VIII. Sole shareholder companies

Under the Law, which applies in this respect to both S.A.s and S.L.s, either form of business entity can be set up as, or can subsequently become, a company having a sole shareholder (S.A.) or sole participation unit holder (S.L.), i.e. a wholly-owned subsidiary .

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Such companies are subject to a specific regime involving special reporting requirements and registration requirements . For example, the fact that a company has a single owner has to be acknowledged on all company correspondence and commercial documentation. Likewise, contracts between the company and its sole owner need to be recorded in a special company register . On the whole, such requirements can be deemed mere administrative and reporting requirements, but adherence to the specific rules is of paramount importance, because otherwise, under certain circumstances, the company can loose its limited liability status .

VIII. Branches
In addition to the forms of business enterprise created under Spanish law, that constitute separate legal entities, a foreign investor may operate in Spain through a branch . The formation of a branch requires the execution of a public deed that must be registered at the Mercantile Register. From the foreign investment legislation viewpoint, the branch must have an assigned capital, which is not subject to any minimum amount requirement . The branch must have a legal representative who is empowered by the home office to administer the affairs of the branch. Apart from this requirement, there are no formal administration or management bodies . Except for the obvious differences in terms of internal structure and organization, a branch operates much like a corporation in its dealings with third parties . The choice between forming a branch or a legal entity in Spain may be affected by commercial reasons; for example, a company may be deemed to provide a more solid presence than a branch. There are also other differences which are addressed in other chapters of this publication .

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